A MVR 35 billion state budget will be proposed for the year 2021, the Finance Ministry has revealed.
Finance Ministry’s Chief Financial Budget Executive, Ahmed Sharuwash Adam said the last stages of budget preparation for the upcoming year is ongoing. Some delays are being experienced due to the changes in revenue and expenditure as a result of effects on the economy caused by the COVID-19 pandemic. However, the budget will be finalised and submitted at the parliament by October 31st, as previously scheduled, said Sharuvash.
Sharuvash said the budget for next year is smaller than the budget allocated for the current year. Instead of comparing the size of the budget, it is more important to focus on the other important aspects of the budget, he added.
“Traditionally, the actual ‘size’ of the budget has always been very important. This mentality must be changed. There are more important aspects of the budget, for example, revenue and deficit, the means of generating revenue; these are equally important”, said Sharuvash.
Finance Ministry has previously stated that the budget approved by the parliament for the current year will be revised based on the impacts of the COVID-19 pandemic on the country’s economy.
Sharuvash said the revised budget will be submitted very soon and that there will not be a significant difference between the revised budget and the proposed budget for 2021.
The government set a record budget of MVR 36 billion for 2020 expecting a revenue of MVR 30 billion. However, the economy suffered serious setbacks after the Maldives closed its borders in March as a precautionary measure against COVID-19. However, the situation has been improving since border reopening in July.
